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Keppel FELS delivers first of five rigs to Borr Drilling

KEPPEL Offshore & Marine unit Keppel FELS has delivered the first of five oil rigs to Oslo-based drilling contractor Borr Drilling in the latest sign that the offshore industry is starting to recover from its worst-ever downturn.

The new rig is built to Keppel's proprietary KFELS Super B Class design, which can operate at a depth of 400 ft and drill to 35,000 ft.

Keppel O&M announced in June 2017 that Borr would be taking over the construction contracts of five jack-up rigs initially ordered by Transocean in 2013 for US$1.1 billion.

Under the new agreement, Borr Drilling will take over the contracts and undertake the remaining payment instalments to Keppel FELS.

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Borr bought each rig at US$216 million, not too far from the original price of US$219 million.

The delivery dates of the five rigs were originally between 2016 and 2017, but they were deferred by Transocean to 2020.

The first three rigs will be delivered between 2017 and 2018, while the remaining two rigs will be delivered in 2020.